Procedures for Implementing the New Regulation 50 Increases in Agent Training Allowance Maximum Subsidies
Regulation No. 50 of New York Insurance Law, which became effective October 17, 2007, increases the maximum training allowances and liberalizes the standards in Insurance Law Section 4228(e)(3) used to determine the eligibility of an agent to receive training allowances.
Agents who have not started receiving training allowance subsidies as of October 17, 2007 have their maximum cumulative training allowance subsidy determined entirely under the Regulation 50 provisions.
For agents who began receiving training allowance subsidies prior to October 17, 2007 the following transition provisions apply:
An agent who is receiving subsidies and who is in the first, second, third, or fourth contract year on October 17, 2007 has the maximum cumulative subsidy for that contract year determined as:
1/12th of the sum of (a) completed months of service prior to October 17, 2007 in that agent contract year times the old maximum cumulative subsidy for that year and (b) the remaining number of months of service in that agent contract year times the new maximum cumulative subsidy for that year.
For contract years, up to and including the fourth contract year, after this transition contract year the maximum cumulative training allowance subsidy is determined entirely under the Regulation 50 provisions.
Any change an insurer makes in its training allowance plan to take advantage of the Regulation No. 50 increases in the maximum training allowance subsidies or liberalization of the standards used to determine eligibility constitutes an agent compensation plan change. As such it must be filed with the Department under the requirements in Insurance Law Section 4228 covering agent compensation plan filings.